Newspaper article THE JOURNAL RECORD

AMC Shareholders Overwhelmingly Approve Buyout by Chrysler Corp. / Some Mourn Loss

Newspaper article THE JOURNAL RECORD

AMC Shareholders Overwhelmingly Approve Buyout by Chrysler Corp. / Some Mourn Loss

Article excerpt

DETROIT (AP) - American Motors Corp. shareholders overwhelmingly approved Chrysler Corp.'s $830 million buyout offer Wednesday despite strong misgivings by some who mourned the demise of the last major U.S. automaker outside the Big Three.

The approval, much of which was voted in proxies counted before the shareholder meeting at AMC's headquarters in the Detroit suburb of Southfield, set into motion a flurry of deal-closing document signing by Chrysler and AMC lawyers in New York.

Until Wednesday, when it became a Chrysler subsidiary, AMC was the fourth-largest domestic automaker. The buyout leaves Chrysler, General Motors Corp. and Ford Motor Co. to compete with more than 30 other automakers around the world.

Joseph E. Cappy, AMC president and chief executive officer, told shareholders that Wednesday ``should be regarded as a day of fulfillment, instead of disappointment.''

``I want to disabuse anyone of the notion that this merger is the case of a failing company falling prey to a more successful competitor. AMC is not a failing company,'' Cappy told shareholders.

``Whether we have the financial strength to stay the distance in the face of the burgeoning competition out there - 38 automotive companies worldwide - is another matter entirely. Clearly we do not,'' he said.

Cappy said AMC would have finished 1987 with a ``very good profit'' and described the buyout as ``bittersweet.''

AMC earned $53.7 million in the first half of 1987, its third consecutive profitable quarter. But since 1980, AMC lost $838.6 million, prompting French government-owned Renault to sell its 46.4 percent AMC interest to Chrysler in March.

Cappy said AMC would have earned somewhat less in the second half of the year because of startup costs involved in the fall introduction of the Renault Premier, built at AMC's new high-tech assembly plant in Bramalea, Ontario. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.